Sanctions Regimes for Public Procurement Suppliers 2023-03-16
2023-03-16
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The UK has implemented severe sanctions against Russia, including the freezing of over £18 billion worth of assets. This raises concerns about suppliers complying with these regimes for public procurement.
What steps he is taking with Cabinet colleagues to ensure suppliers follow the UK's sanctions regimes for public procurement?
The UK and its international partners stand shoulder to shoulder in implementing sanctions against malignant actors on the international stage. This includes the most severe sanctions ever against Russia, which represents over £18 billion in assets frozen and reported to the Office of Financial Sanctions Implementation. Contracting authorities must comply with our sanctions, which have legal force.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The British Chamber of Commerce reported that small and medium-sized enterprises (SMEs) received a relatively small amount of direct government procurement money in 2021 compared with five years ago.
On the question of procurement more widely, the British Chamber of Commerce found that, in 2021, small and medium-sized enterprises were receiving a relatively small amount of direct Government procurement money compared with five years ago. Can the Minister explain why SMEs are being increasingly sidelined from access to public procurement under his Government?
Far from sidelining SMEs, the Government are absolutely focused on ensuring that they get a fairer share of the Government procurement pie. I am delighted that the Procurement Bill will put an obligation on contracting authorities to have regard to what their tenders will do for SMEs. That will ensure that, right at the early stages of the process, as well as displaying a long pipeline notice, contracting authorities think through how they can make certain that those tenders are best adaptable to SMEs and their requirements.
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Assessment & feedback
The specific reduction in access for SMEs was not addressed directly, only general statements about improving future procurement practices were given.
Focused On Future Improvements
Response accuracy
Q3
Partial Answer
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Context
It was revealed that Infosys, a company with a substantial UK presence, continued operations in Russia after announcing its withdrawal. This company later received a public procurement contract worth £1.7 million.
In November, it was revealed in The Guardian that the company Infosys was still operating in Russia, eight months after it announced that it would withdraw. Just a month later, that company was awarded a lucrative contract worth £1.7 million of taxpayers' money. Was the Minister aware of that when that contract was awarded, and do the Government believe that public money should be going to those who are operating in Russia?
We set out in policy procurement note 01/22 our approach to public procurement and links with Russia. That PPN speaks for itself, and I am sure the hon. Lady is familiar with it. It requires contracting authorities to check from whom they are receiving goods and services. It is primarily aimed at those who are Russia or Belarus-based, or who have significant control. I do not know the particulars of the circumstances that she mentions, but the Government's approach through PPN 01/22 is very clear.
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Assessment & feedback
The minister did not address whether they were aware of Infosys' operations in Russia at the time of contract award or if it was appropriate to give public money to such companies.
Referenced Existing Policy Without Addressing Specific Incident
Response accuracy